Zimbabwe’s monthly inflation slowed to 3.7 per cent in December 2024, down from 11.7 per cent recorded the previous month, according to data released by the Zimbabwe National Statistics Agency (ZIMSTAT) on Friday.
According to ZIMSTAT, inflation showed a downward trend in November and December, from a peak of 37.2 per cent in October.
This change is attributed to the stability of prices and the local currency, the Zimbabwe Gold (ZiG), following a 43 per cent devaluation by the central bank in September.
In USD, annual inflation was 2.5 per cent in December, down from 3.3 per cent in November.
Presenting the 2025 national budget to Parliament in November, Finance Minister Mthuli Ncube said he expects ZiG month-on-month inflation to remain stable and average below 3 per cent next year, supported by tight fiscal and monetary policies.
He added that the 2025 fiscal plan is based on single-digit inflation and a stable exchange rate to foster a favourable business environment. Said Ncube:
<blockquote>
Any deviation from these assumptions, including the widening of the premium between the official and parallel markets, will severely impact macroeconomic stability.
</blockquote>
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In Zimbabwe, prices are not going up as fast as before. In December, the prices only went up 3.7%, which is less than the 11.7% increase in November. The prices have been more stable since the currency was devalued in September. The Finance Minister said that he expects the inflation to stay low in 2025, which will help businesses. If the inflation rises too much, it can cause problems for the economy. The aim is to keep inflation in single digits and have a stable exchange rate.

Zimbabwe's Monthly Inflation Slows To 3.7% In December, Down From 11.7%

According to the most recent data from the <a href="https://www.pindula.co.zw/Zimbabwe_National_Statistics_Agency_(ZIMSTAT)">Zimbabwe National Statistics Agency (ZIMSTAT)</a>, monthly inflation decreased to 0.7% in January 2023, losing 0.6 percentage points.
In a report seen by Pindula News, ZIMSTAT stated that inflation reduced significantly in the just-ended month. Said ZIMSTAT:
<blockquote>
The month-on-month inflation rate in January 2023 was 0,7% shedding 0,6% on the December 2022 rate of 1,3% meaning that prices as measured by the all items blended CPI increased by an average of 0,7% from December 2022 to January 2023.
</blockquote>
The month-on-month Food and Non-Alcoholic Beverages inflation rate stood at 0,4% in January 2023, shedding 1,7% on the December 2022 rate of 2.1%.
The non-food inflation rate stood at 1%, increasing by 0.4% on the December 2022 rate of 06%.
The blended CPI for the month ending January 2023 stood at 278.12 compared to 276.10 in December 2022 and 138.02 in January 2022.
ZIMSTAT added that the year-on-year inflation rate for the month of January 2023 as measured by the all-items blended Consumer Price Index (CPI) stood at 101.5%. Added ZIMSTAT:
<blockquote>
This means that prices as measured by the all items blended CPI increased by an average of 101.5 percent between January 2022 and January 2023.
</blockquote>
The food poverty line (FPL) as of January 2023 stood at $22 384.78 implying that the minimum needs basket cost that much per person in January 2023 which represents an increase of 0.9% over the December 2022 figure of $22 192.87
The Total Consumption Poverty Line (TCPL) for Zimbabwe stood at $29 499.89 per person in January 2023. This means that an individual required that much to purchase both non-food and food items as of January 2023 in order not to be deemed poor.
This represents an increase of 1.0 per cent when compared to the December 2022 figure of $29,219.01.
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Zimbabwe's Monthly Inflation Declines, Food Poverty Line Rises - ZIMSTAT

Zimbabwe’s annual inflation slowed to 243,8% in December from 255% in November, the Standard reported citing a report issued by the Zimbabwe National Statistics Agency (ZIMSTAT) on Wednesday.
According to the report, month-on-month inflation for the month was 2.4%, higher than November’s 1.8%.
The statistics also showed an individual in the country now needs ZW$22 193 per month to afford basic needs. The report read:
<blockquote>
Total Consumption Poverty Line for one person stood at $29 219 in December 2022.
</blockquote>
Month-on-month inflation peaked this year at 30.7% in June.
The consumer price index (CPI) for December 2022 stood at 13 672 91 compared to 13 349 42 in November 2022.
Economist <a href="https://www.pindula.co.zw/Prosper_Chitambara">Prosper Chitambara</a> said inflation had slowed down, but prices were still shooting up. He told NewsDay:
<blockquote>
Two hundred and forty-three percent is still the highest inflation rate in the world and it creates a lot of challenges for the economy and consumers. The fact that it has slowed down does not mean that prices are going down. Our pricing is still on the very high side — look at fuel, bread and so on, they are still going up. As long as prices continue to increase, then it even makes it more difficult for the ordinary person to survive.
Secondly, when we look at our inflation figures, some scholars have argued that they don’t reflect the full extent of price developments in an economy that is now highly informal. So our official figures tend to understate the challenges with respect to price increases because they are based on a small formal segment whereas the economy has now been informalised to a greater extent.
</blockquote>
Some analysts believe the increase in month-on-month can be attributed to Christmas spending and the bonuses that were paid by various companies to their employees which increased aggregate demand.
Finance minister Mthuli Ncube has targeted to contain monthly inflation below 3% in 2023.
On trade statistics for November 2022, ZIMSTAT said the total value of exports increased from US$498.5 million in October 2022 to US$671.3 million in November 2022.
Imports increased from US$758.8 million in October to US$797.9 million in November 2022.
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